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Brazil's New Middle Class Goes on a Spree

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Nick Scott Jun 9, 2011 7:31 PM GMT With the dollar value of the GDP in Brazil at historical highs as a ratio to the U.S. GDP and the BR Real currently at overpriced levels expect something to give. Brazil also has its own form of easy lending to first home buyers. Government is getting rich sending money overseas. It will snap. Not a question of if, but when and how badly. As per credit ratings perhaps not as badly as in the past.
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Ale Jun 9, 2011 12:45 PM GMT With average anual interest rates of 238% banks can take big losses on bad loans and still make a lot of money. With these rates banks dont even need a credit risk department, just give a credit card to anyone who is not yet a non-paying consumer (serasa list). Brasil banks can still Samba a lot.
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Jo Jo the dog faced boy May 19, 2011 11:15 AM GMT The problem is the consumers are not aware of what they are getting into, and the rates are sky high!! I would say Americans, some of them, have a culture of managing debt and thus do it smartly. There are consumers the world over that do not/cannot educate themselves and thus are taken advantage of by profiteers. Live like Jesus, you won't need that tv or the other money sucking items!! YAY.
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MW May 18, 2011 1:51 PM GMT What?Declare bankruptcy in Brazil?... there's no such thing there, if you don't pay, your name is listed as non-paying consumer (serasa), then will stay there till you pay the dept. For sure there's a bubble being created, both on personal credit and real state.
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Patty May 17, 2011 2:47 PM GMT "There's no culture of managing debt." If you mean other countries have a culture of managing debts, you are wrong. The American dream is to pay loans and mortgages until you die. When you are almost paying off the loans and mortgages, it is time to "transfer" everything to a nusing home and pretend you have lived the good life and you have some "nice" people that you pay them to take care of you.Americans borrow money; they always owe, they never own. So what is different from other countries? I do not really notice any difference.
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Tim May 17, 2011 10:06 AM GMT History is repeating itself once again. Temptation to unaffordable spending & lending practices. The same just almost collapsed both U.S. and global economy is now showing up in Brazil.
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mikemikes May 17, 2011 9:48 AM GMT I just got a $829.99 iPad2 for $98.37 and my girlfriend snagged an awesome $1299 MacBook Air for only $137.93, its being delivered tomorrow. I would be a fool to keep paying high retail prices at places like Walmart or BestBuy, when I even sold a 37" HDTV to my boss for $600 that I only paid $78.24 for. I use two sites, both are good, SnagBids.comand BidsGo.com
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slo005 May 17, 2011 7:05 AM GMT This is scary but not unexpected. One must learn from others to avoid doing the same thing. Credit cards used to be a high middle class only tool in the past in Brazil. That lower classes can now have a card is good to reduce thefts and loss of all cash during home robberies, trips to supermarket, etc. But there needs to be some clear guidelines for people before they go off on shopping sprees based solely on credit
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junio May 17, 2011 3:36 AM GMT Brazil's New Middle Class???Oh man!!what a joke!!How can someone be to belong the Middle Class living in shantytown???I'm Brazilian and I say...The Brazil is not a serious country...
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leland May 16, 2011 12:38 PM GMT I think you missed the point Jim. The problem is individuals living beyond their means and borrowing to pay for a life style they cannot afford. You only have control over your own actions, blaming other people for your problems takes away your power to help yourself.
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